image caption Gold investments are backed by gold kept in the vaults of the Royal Mint
Gold shone for young investors with The Royal Mint recording a fivefold increase in the number of young adults taking a stake in the precious l.
The Mint, which is 100% owned by the Treasury, said young investors were drawn to its new digital platform for the 'gold investment.
Investments are backed by gold stored in Royal Mint vaults.
It reported pre-tax profits of 12 , £ 4million in the last financial year, compared to a loss of £ 200,000 the previous year.
Many companies are now offering gold investments to young digital savvy investors.
The interest of young DIY investors, investing their money in investments ranging from cryptocurrencies to environmental assets, prompted the city watchdog to carry out rresearch into the risks they were taking.
The Financial Conduct Authority (FCA) found that these "self-taught" investors - who trade on their own rather than seek financial advice - were prepared to " try "to invest, especially in high risk products, for" challenge, competition and novelty ".
Image copyright The Royal Mint image caption Gold bars at the Royal Mint
Gold is generally considered to be un safe investment and has been popular among investors around the world in uncertain times like the pandemic and low interest rates for cash.
The Mint said its new Savings platforms have attracted new clients to investments in precious ls, which it has offered for years through other channels.
He said investment in limited edition coins . produced alongside general circulation coins, had also proved popular over the past year.
Anne Jessopp, Managing Director of the Mint, said: “As the spending habits are changing, we set out to reinvent the Mint and secure our long-term future as a UK manufacturer.
"By deliberately expanding into areas that complement our heritage, we have been able to attract thousands of clients to precious ls, showcase theBritish craftsmanship and record income. We may be 1,100 years old, but we are firmly focused on the future. "
Along with its more traditional operations, the Mint has also produced nearly two million visors for the NHS last year, in response to the Covid crisis.
Questions for young investors to ask
The FCA has launched a campaign to prevent investment damage, using the online, advising people to ask:
- Follow I'm comfortable with the level of risk?
- Do I correctly understand the investment offered to me?
- Am I protected in the event of a problem ?
- Are my investments regulated?
- Do I need financial advice?